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Situated in Foster City, California, Gilead Sciences, Inc. (GILD) is a top biopharmaceutical company specializing in the development and commercialization of innovative therapies for diseases such as HIV, liver diseases, cancer, and inflammation. Its market cap currently stands at $114.2 billion. The company is set to announce its fiscal Q4 earnings results after the market closes on Tuesday, February 11.
Ahead of the event, analysts expect GILD to report a profit of $1.67 per share, down 2.9% from $1.72 per share in the year-ago quarter. The company surpassed Wall Street’s bottom-line estimates in three of the past four quarters and missed on another occasion.
For fiscal 2024, analysts expect GILD to report EPS of $4.36, down 35.1% from $6.72 in fiscal 2023. However, a robust rebound is expected in fiscal 2025, with EPS forecasted to rise by 73.2%, reaching $7.55.
GILD stock has surged 6.6% over the past year, struggling to keep up with the S&P 500’s ($SPX) 24.6% gains. However, the stock has outpaced the Health Care Select Sector SPDR Fund’s (XLV) 1% return over the same time frame.
GILD popped 6.8% on Nov. 6 after releasing its Q3 earnings report. While its EPS of $2.02 declined 11.8% year over year, it exceeded Wall Street’s estimate of $1.58. The company reported strong revenue performance, surpassing expectations with $7.55 billion, a 7% year-over-year increase. Despite a decline in net earnings due to a $1.75 billion impairment charge, strong sales from the HIV drug Biktarvy and COVID-19 treatment Veklury contributed to the performance.
Additionally, Gilead raised its 2024 product sales forecast to $27.8 billion - $28.1 billion and expects adjusted earnings of $4.25 – $4.45 per share, which boosted investor confidence.
The consensus opinion on GILD stock is cautiously bullish, with an overall “Moderate Buy” rating. Among the 29 analysts covering the stock, 17 advise a “Strong Buy” rating, and 12 suggest “Hold.”
GILD’s average analyst price target is $100.08, indicating a potential upside of 9.2% from the current price levels.
